MORE THAN 74,000 APPLICATIONS RECEIVED UNDER EPF ACCOUNT 2 SUPPORT FACILITY

KWASA DAMANSARA, 15 April 2023: The Employees Provident Fund (EPF) announces that as at 14 April 2023, a total of 74,392 applications have been received under MBSB Bank’s Ihsan-i Account 2 Support Facility (FSA2), with 34,643 of them being eligible applications for a total amount of RM722 million.

 

The FSA2 was announced by the EPF to enable its members apply for advance application for Age 50 or Age 55 Conditional Withdrawal in obtaining personal financing from participating banking institutions, namely MBSB Bank through its Shariah-compliant Ihsan-i beginning 7 April 2023; and Bank Simpanan Nasional (BSN) through its BSN MyRinggit Insan-i beginning 14 April 2023. The applications will remain open for one year, allowing EPF members ample time to apply in advance for the Age 50 or Age 55 Conditional Withdrawal. Members are required to pay the monthly repayments as per their agreement with the banking institutions.

 

EPF Chief Executive Officer Datuk Seri Amir Hamzah Azizan said, “The EPF is expecting the number of applications for FSA2 to continue to rise, especially now that BSN has launched its BSN MyRinggit Insan-i today. We are happy to have both MBSB Bank and BSN supporting the Account 2 Support Facility, which we believe would help members with temporary liquidity issues to obtain cash flow through personal financing but without causing serious impact to their retirement savings.

 

“We understand that there has been confusion among some EPF members regarding the need for monthly repayments towards the personal loans. We want to clarify that this facility is targeted towards EPF members who have savings in Account 2 and are supported by a reasonable income to ensure they can afford the personal financing and committed to the monthly repayments without compromising their retirement income adequacy and security. It is essential to note that the monthly repayments are necessary to ensure that the loan is repaid on time,” he added.

 

The eligibility amount for the personal financing is based on the savings amount in Account 2, with a minimum financing amount of RM3,000 and a maximum of RM50,000. Members can apply for the personal financing online through MBSB Bank or BSN. Once the personal financing is approved, members can submit an advance notice for Age 50 or Age 55 Conditional Withdrawal to the EPF based on the approved financing amount. During Phase 1, eligible members who are 40 years of age or older may apply, subject to the banks terms and conditions. The withdrawal amount as applied under the Age 50 or Age 55 Conditional Withdrawal will be made to the member’s account at the bank when the member reaches the age of between 50 years to 55 years in accordance with the member’s choice of withdrawal age.

 

Members can visit http://fsa2.kwsp.gov.my/ to check their eligibility for the advance application for Age 50 or Age 55 Conditional Withdrawal and the amount they can apply for under the facility. Additionally, frequently asked questions and corresponding answers related to the facility are also available on the website for members to refer to.

 

Members are encouraged to register or update their mobile phone number via the Self-Service Terminal (SST) available at any EPF branch for the purpose of receiving a Transaction Authorisation Code (TAC) to verify their identity when conducting transactions. For more information on the Account 2 Support Facility, visit  the EPF website at www.kwsp.gov.my, or call the EPF Contact Management Centre at 03-8922 6000.

 

Issued by EPF Media Desk 
Corporate Affairs Department
15 April 2023

About the Employees Provident Fund (EPF)

The Employees Provident Fund® (“EPF®”) is one of the oldest retirement funds in the world. Established in 1951, the EPF® is a social-security organisation focused on safeguarding member savings and delivering excellent services. In recent years, in line with its vision of helping members achieve a better future, the EPF® has expanded its role to encompass the creation of a comprehensive social well-being ecosystem. Today, the EPF® remains steadfast in its commitment to members through consistent efforts to update and improve itself, in order to build the foundation for sustainable, holistic and equitable well-being for all Malaysians.